Core Viewpoint - The financial turmoil surrounding the Zhejiang businessman Yu Faxiang and his Xiangyuan Group has led to significant stock price declines for its listed companies, Xiangyuan Cultural Tourism and Jiaojian Co., with stock prices dropping over 20% and 30% respectively in December 2023 [1][5]. Group 1: Company Financial Issues - Xiangyuan Cultural Tourism announced that its production and operations remain normal despite the financial issues faced by its indirect controlling shareholder, Xiangyuan Holdings [5]. - The total assets of Xiangyuan Holdings are approximately 60 billion yuan, with liabilities of around 40 billion yuan, indicating a liquidity crisis exacerbated by the downturn in the real estate market [12]. - The company has been involved in over 200 financial products that have failed to pay out, with a total scale exceeding 10 billion yuan [12][13]. Group 2: Shareholder and Stock Information - As of the announcement date, the actual controller and major shareholder, Xiangyuan Travel, holds 612,433,915 shares, accounting for 58.08% of the total share capital, with all shares being judicially frozen [6][7]. - The judicial freeze includes 461,967,812 shares under pending freeze and 207,360,000 shares under judicial pledge, indicating severe restrictions on shareholder activities [6][10]. - In Jiaojian Co., the controlling shareholder's 274,293,290 shares, representing 44.32% of the total share capital, have also been frozen, with 45,243,290 shares under judicial freeze [9][10]. Group 3: Government Response and Support - Following the financial crisis, the local government has established a working group to assist Xiangyuan Holdings in managing its debts and ensuring normal operations [14][16]. - The working group began its investigation on December 12, 2023, focusing on asset and liability assessments to facilitate targeted support for the company [16]. - The Zhejiang provincial government has set up multiple channels for investors to voice their concerns and complaints regarding the financial products and the ongoing situation [17].